diff -Nur -Xpatches/no.freeciv freeciv/common/city.h my_freeciv/common/city.h
--- freeciv/common/city.h	Thu May 17 22:58:03 2001
+++ my_freeciv/common/city.h	Fri May 18 13:24:42 2001
@@ -185,6 +185,10 @@
   /* the people */
   int size;
 
+  /* index indicating the order in which the city is founded/aquired by 
+   the current owner, used for (un)happiness calculations. */
+  int id_by_owner;
+
   /* How the citizens feel:
      ppl_*[0] is distribution before any of the modifiers below.
      ppl_*[1] is distribution after luxury.
diff -Nur -Xpatches/no.freeciv freeciv/server/citytools.c my_freeciv/server/citytools.c
--- freeciv/server/citytools.c	Wed May 16 18:19:15 2001
+++ my_freeciv/server/citytools.c	Fri May 18 14:06:37 2001
@@ -140,19 +140,29 @@
 }
 
 /**************************************************************************
-v 1.0j code was too rash, only first penalty now!
+Unhappiness due to civ size is no longer applied across the board,
+but instead on a city by city basis.  Only cities that are above the
+penalty threshold are affected, according to the order in which they
+are founded/aquired.  Since currently this is taken as the order in 
+which they are inserted into a player's city list, a lost city retaken
+will be treated as a new city for this particular purpose.  A newly
+founded or conquered city will have the correct index at that time
+(see create_city() and transfer_city()), but changes due to cities 
+lost are not reflected until the start of next turn (see cityturn.c : 
+update_city_activities()).  Suggestions for a better implementation 
+are welcome.  -- Jing
 **************************************************************************/
-int content_citizens(struct player *pplayer) 
+int content_citizens(struct city *pcity) 
 {
-  int cities  = city_list_size(&pplayer->cities);
+  int id      = pcity->id_by_owner;
   int content = game.unhappysize;
-  int basis   = game.cityfactor + get_gov_pplayer(pplayer)->empire_size_mod;
-  int step    = get_gov_pplayer(pplayer)->empire_size_inc;
+  int basis   = game.cityfactor + get_gov_pcity(pcity)->empire_size_mod;
+  int step    = get_gov_pcity(pcity)->empire_size_inc;
 
-  if (cities > basis) {
+  if (id > basis) {
     content--;
     if (step)
-      content -= (cities - basis - 1) / step;
+      content -= (id - basis - 1) / step;
     /* the first penalty is at (basis + 1) cities;
        the next is at (basis + step + 1), _not_ (basis + step) */
   }
@@ -869,6 +879,9 @@
   pcity->owner = ptaker->player_no;
   city_list_insert(&ptaker->cities, pcity);
 
+  /* update city index for the taker */
+  pcity->id_by_owner=city_list_size(&ptaker->cities);
+
   give_citymap_from_player_to_player(pcity, pgiver, ptaker);
   map_unfog_city_area(pcity);
 
@@ -982,6 +995,8 @@
   pcity->y=y;
   sz_strlcpy(pcity->name, name);
   pcity->size=1;
+  /* this one is not yet in the list */
+  pcity->id_by_owner=city_list_size(&pplayer->cities)+1;
   pcity->ppl_elvis=1;
   pcity->ppl_scientist=pcity->ppl_taxman=0;
   pcity->ppl_happy[4]=0;
diff -Nur -Xpatches/no.freeciv freeciv/server/citytools.h my_freeciv/server/citytools.h
--- freeciv/server/citytools.h	Wed May 16 18:19:15 2001
+++ my_freeciv/server/citytools.h	Thu May 17 23:15:16 2001
@@ -32,7 +32,7 @@
 int can_sell_building(struct city *pcity, int id);
 struct city *find_city_wonder(Impr_Type_id id);
 int city_specialists(struct city *pcity);                 /* elv+tax+scie */
-int content_citizens(struct player *pplayer); 
+int content_citizens(struct city *pcity); 
 int get_temple_power(struct city *pcity);
 int get_cathedral_power(struct city *pcity);
 int get_colosseum_power(struct city *pcity);
diff -Nur -Xpatches/no.freeciv freeciv/server/cityturn.c my_freeciv/server/cityturn.c
--- freeciv/server/cityturn.c	Thu May 17 22:58:03 2001
+++ my_freeciv/server/cityturn.c	Fri May 18 01:38:15 2001
@@ -167,7 +167,7 @@
   int workers, tmp;
 
   workers = pcity->size - city_specialists(pcity);
-  tmp = content_citizens(&game.players[pcity->owner]);
+  tmp = content_citizens(pcity);
   /* leftover unhappiness is no longer discarded,
      but saved in ppl_residue[i] instead. */
   pcity->ppl_residue[0] = MAX(0, -tmp);
@@ -866,10 +866,13 @@
 void update_city_activities(struct player *pplayer)
 {
   int gold;
+  int id;
+  id=city_list_size(&pplayer->cities);
   gold=pplayer->economic.gold;
   pplayer->got_tech=0;
   city_list_iterate(pplayer->cities, pcity)
      update_city_activity(pplayer, pcity);
+     pcity->id_by_owner = id--;
   city_list_iterate_end;
   pplayer->ai.prev_gold = gold;
   if (gold-(gold-pplayer->economic.gold)*3<0) {